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bakes1313

Expecting subprime, how bad do you think?

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We are looking to buy a home that is $250k. We have $50k in equity in our current home. However, we would like to put down only 5% if possible so that we have money left over for farm equipment, the house sits on 20 acres.

 

Our scores are TU 583, EX 499, and EQ 585 for my hubby and TU 534, EX 517, and EQ 535 for me. I was off work for 5 months due to pregnancy complication April - Aug 2002, and that is when we got really behind on our bills. We have not had any lates since March of this year, and I have documentation to remove 5 collections that appear on my report.

 

My question is whether we would be able to get approved, and a general guideline of what rates we could expect and whether that would change drastically with 10% down.

 

I checked out some of Fannie Mae's Community Programs, and do have an extenuating circumstance to fall below their required 600 mark. Thanks so much for all your help.

 

Edited to include the good stuff!

Income $7600

Student Loans $350 mth

Credit Cards $475 mth, includes a cc with $125 per month, will be paid off in March

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After you get the collections removed, your scores should jump. That will help.

 

I just got approved and locked in 5.875% with my scores

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Scores below 600 are definately going to put you into subprime, however, there are some good programs out there (2/28, Int only) that will get you a reasonable rate and allow you to raise your scores. After the PPP expires (2-3yrs) you can refinance into a conforming loan.

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We are looking to buy a home that is $250k. We have $50k in equity in our current home. However, we would like to put down only 5% if possible so that we have money left over for farm equipment, the house sits on 20 acres.

 

Our scores are TU 583, EX 499, and EQ 585 for my hubby and TU 534, EX 517, and EQ 535 for me. I was off work for 5 months due to pregnancy complication April - Aug 2002, and that is when we got really behind on our bills. We have not had any lates since March of this year, and I have documentation to remove 5 collections that appear on my report. What are the lates for? Also, what type of documentation are you talking about? If your lates include rent or mortgage payments, that will be a major difficulty. If you are talking credit cards or installment loans, that will not be nearly as bad.

 

My question is whether we would be able to get approved, and a general guideline of what rates we could expect and whether that would change drastically with 10% down. You will most likely be able to be approved. The rate will depend on who you go with and what type of program you are put into. Also, the state you are located in can make as much as a 0.75% difference. The 10% down will also help to some extent, though it will not be a major change in rate.

 

I checked out some of Fannie Mae's Community Programs, and do have an extenuating circumstance to fall below their required 600 mark. Thanks so much for all your help.

 

Edited to include the good stuff!

Income $7600

Student Loans $350 mth

Credit Cards $475 mth, includes a cc with $125 per month, will be paid off in March

 

This is a loan that would definitely have to be manually underwritten do to your extenuating circumstances. I can not say that you would be approved, but I would definitely recommend that you try that route before going subprime.

 

 

fla-tan

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